A bicycle is purchased for $940 and financed for 11 months. There was not a down payment. If the total finance charge is $78.00, find the annual percentage rate using Exhibit Table 13-1. NUMBERINSTRUCTIONS FOR USE OF TABLES PLANSANNUAL PERCENTAGE RATEANNUAL PERCENTAGE RATE TABLE FOR MONTHLY PAYMY PAYMENT PLANSFRB-103-M% 13.25% 13.50% 13.75%FRB-104-MANNUAL PERCENTAGE RATE5% 14.50% 14.75% 15.00% 15.25% 15.50% 15.75% 16.00% 16.25% 16.50% 16.75% 17.00% 17.25% 17.50% 17.75%IFINANCE CHARGE PER $100 OF AMOUNT FINANCEDIANNUAL PERCENTAGE RATE TABLE FOR MONTHLY PAYMENT PLANSANNUAL PERCENTAGE RA18.00% 18.25% 18.50% 18.75% 19.00% 19.25% 19.50% 19.75% 20.00% 20.20.50% 20.75% 21.00% 21.25% 21.50% 21.75%MOUNT FINANCED(FINANCE CHARGEFRB-105-M

Loan are paid monthly payment that carry the payment of interest payments and also amount of…

Answered: A bicycle is purchased for $940 and…

A bicycle is purchased for $940 and financed for 11 months. There was not a down payment. If the total finance charge is $78.00, find the annual percentage rate using Exhibit Table 13-1.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A bicycle is purchased for $940 and financed for 11 months. There was not a down payment. If the total finance charge is $78.00, find the annual percentage rate using Exhibit Table 13-1.

NUMBER
INSTRUCTIONS FOR USE OF TABLES PLANS
ANNUAL PERCENTAGE RATE
ANNUAL PERCENTAGE RATE TABLE FOR MONTHLY PAYM
Y PAYMENT PLANS
FRB-103-M
% 13.25% 13.50% 13.75%
FRB-104-M
ANNUAL PERCENTAGE RATE
5% 14.50% 14.75% 15.00% 15.25% 15.50% 15.75% 16.00% 16.25% 16.50% 16.75% 17.00% 17.25% 17.50% 17.75%
IFINANCE CHARGE PER $100 OF AMOUNT FINANCEDI
ANNUAL PERCENTAGE RATE TABLE FOR MONTHLY PAYMENT PLANS
ANNUAL PERCENTAGE RA
18.00% 18.25% 18.50% 18.75% 19.00% 19.25% 19.50% 19.75% 20.00% 20.
20.50% 20.75% 21.00% 21.25% 21.50% 21.75%
MOUNT FINANCED
(FINANCE CHARGE
FRB-105-M

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